Analyzing Taboola.com (NASDAQ:TBLA) & Leidos (NYSE:LDOS)

Taboola.com (NASDAQ:TBLA) and Leidos (NYSE:LDOS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Volatility and Risk

Taboola.com has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Leidos has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Institutional and Insider Ownership

42.9% of Taboola.com shares are held by institutional investors. Comparatively, 76.1% of Leidos shares are held by institutional investors. 20.6% of Taboola.com shares are held by insiders. Comparatively, 0.8% of Leidos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Taboola.com and Leidos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taboola.com	5.64%	10.72%	6.37%
Leidos	8.15%	31.92%	11.23%

Analyst Recommendations

This is a breakdown of recent ratings for Taboola.com and Leidos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taboola.com	0	3	5	0	2.62
Leidos	0	9	5	1	2.47

Taboola.com currently has a consensus target price of $5.90, indicating a potential upside of 5.73%. Leidos has a consensus target price of $167.69, indicating a potential upside of 56.82%. Given Leidos’ higher possible upside, analysts clearly believe Leidos is more favorable than Taboola.com.

Earnings and Valuation

This table compares Taboola.com and Leidos”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taboola.com	$1.91 billion	0.71	$42.28 million	$0.38	14.68
Leidos	$17.17 billion	0.78	$1.45 billion	$10.92	9.79

Leidos has higher revenue and earnings than Taboola.com. Leidos is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.

Summary

Leidos beats Taboola.com on 10 of the 14 factors compared between the two stocks.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

About Leidos

Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. The company operates through Defense Solutions, Civil, and Health segments. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. Intelligence Community, the Department of Defense, the space development agency, the National Aeronautics and Space Administration, defense information systems agency, military services, and government agencies of U.S. allies abroad, as well as other federal and commercial customers in the national security industry. The solutions include technology, large-scale systems, command and control platforms, data analytics, logistics, and cybersecurity solutions, as well as intelligence analysis and operations support services to critical missions. The Civil segment provides systems integration services to air navigation service providers, including the federal aviation administration, the En route automation modernization, advanced technology oceanic procedure, time based flow management, terminal flight data management, geo-7, and future flight services, as well as enterprise-information display systems; and security detection services. It also offers information technology (IT) solutions in cloud computing, mobility, application modernization, DevOps, data center, network modernization, asset management, help desk operations, and digital workplace enablement; and environment, energy, and infrastructure services. The Health segment offers solutions to federal and commercial customers responsible for health and well-being of people, include health information management, managed health, digital modernization, and life sciences research and development services. Leidos Holdings, Inc. was founded in 1969 and is headquartered in Reston, Virginia.